Resolving international trade and investment disputes

Abstract:

This paper analyses the importance to the Latin American countries of the main dispute resolution facilities and conventions applicable to international trade and investment, of which they are the inseparable complement. The spectacular growth in the disputes which these facilities deal with reflects the impact that international trade and investment are now having on economic development. Despite international progress, however, most of the countries have yet to update their domestic legislation, so that this remains a pending task. Accession to the conventions referred to entails numerous responsibilities for both governments and businesses in Latin America. These include paying close attention to the decisions of the international bodies that deal with disputes, and shaping public activities and policies accordingly. Furthermore, to avoid the high cost of the foreign consultancies which regularly advise Latin American governments and companies on such disputes, the countries should train specialists of their own in these areas.